CORESTATE announced today its results for the first half of 2021. According to the figures published, consolidated aggregated revenues and gains amounted to € 112.6m (H1 2020: € 95.6), with adjusted EBITDA of € 39.5m (H1 2020: € 25.9m) and adjusted net profit of € 15.1m (H1 2020: € 11.4m). Real estate assets under management by CORESTATE stood at € 24.3bn at the end of June, with total assets under management (including non-real-estate assets) of € 27.4bn.
Frankfurt, 11 August 2021. CORESTATE Capital Group (CORESTATE), a leading independent real estate investment manager in Europe, announced today its results for the first half of 2021. According to the figures published, consolidated aggregated revenues and gains amounted to € 112.6m (H1 2020: € 95.6), with adjusted EBITDA of € 39.5m (H1 2020: € 25.9m) and adjusted net profit of € 15.1m (H1 2020: € 11.4m). Real estate assets under management by CORESTATE stood at € 24.3bn at the end of June, with total assets under management (including non-real-estate assets) of € 27.4bn.
CEO René Parmantier says: “The focus on investors, which we rolled out in February and have since consistently translated into action, is starting to pay off. We are now benefiting from our broad setup, particularly in Private Debt, with the effects gradually starting to materialise in Real Estate Equity as well. Today we are in a much better place than we were last summer, and we have created a good starting position for the second half of the year. The Fürst Quartier deal in Berlin, which we structured, is one example of where we stand today: at over € 1bn, it is one of the largest single transactions in the year to date.”
The Real Estate Debt segment recorded a sharp rise in income to € 68.4m in the first six months of the year (H1 2020: € 45.7m), thanks to excellent funds business at HFS, but also to CORESTATE Bank, which was consolidated for the first time at the end of May and also contributed to this trend through dynamic growth in project volume. With income of € 41.2m (H1 2020: € 42.8m), the Real Estate Equity segment was more or less stable. Lower revenues from Micro Living Developments were largely compensated for through rising income from Asset and Property Management. On the expense side, the first half of the year saw additional expenditures of € 5m related to transaction and one-off expenses as a result of the latest major acquisition and the associated further development of the business model. The Group’s net financial debt stood at € 556.1m at the end of June, with cash and cash equivalents of € 63.3m.
CFO Udo Giegerich adds: “Our figures show very clearly that CORESTATE recovered from the pandemic-related moderate start to the year in the second quarter and is in excellent shape in many areas. That gives us substantial tailwind for reaching our targets for the year, and especially for our core task of debt reduction, where we remain on track to achieving a financial leverage of less than 3x by the end of the year.”
CEO René Parmantier continues: “Thanks to our financing platform, we are very well-placed in the rapidly growing Real Estate Debt segment. That is true not only with regard to our profitability, but also when it comes to the synergies within the Group, which we now intend to leverage specifically. For this reason as well, we expect a growth boost along with significantly brisker investment business in Real Estate Equity over the course of the second half of the year. The positive drivers in the market in the long term and investor demand are intact and will remain so for the foreseeable future. What’s more, we are well positioned, and our power of innovation is in demand. That is why we are today reaffirming our financial outlook for the whole year, with consolidated aggregated revenues and gains of between € 235m and € 260m, adjusted EBITDA of between € 90m and € 115m and adjusted net profit of between € 50m and € 75m.”
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With 830 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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